Six regional authorities face axe as government pushes devolution overhaul

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Six Regional Development Authorities have accepted the transfer of assets, liabilities and personnel to the two levels of government if MPs approve a new law.

The National Government wants the six authorities to be disbanded in light of devolution and their mandate transfer to the county government.

The six Acts establishing the regional development authorities and which are set to be repealed include the Kerio Valley Development Authority (KVDA), Cap 441, Tana and Athi Rivers Development Authority (Tarda), Caop, 443, the Lake Basin Development Authority (LBDA), Cap 442, the Ewaso Ng'iro North Rivers Basin Development Authority Act, Cap 448, and the Coast Development Act, Cap 449.

The proposed law further seeks to align the national and county governments' functions in tandem with Schedule Four of the Constitution, reduce pursue for budgetary allocations, and enhance efficiency, accountability, and service delivery.

“Tarda has outstanding salary arrears amounting to Sh176,944,578 for the period January 1 to June 30, 2026. The non-payment has resulted in staff defaulting on bank and SACCO loans and statutory obligations, including Social Health Insurance Authority (SHA), Housing Levy, pay as you earn (PAYE) and National Social Security Fund (NSSF), exposing them to penalties, interest, adverse credit listings and loss of benefits,” Liban Duba, Tarda managing director, told MPs

“We respectfully submit that the Bill should expressly provide for the full settlement of outstanding salaries and statutory deductions before or as part of the dissolution and transition process.”

Mr Duba said Tarda supports the government's objective of aligning public institutions with the Constitution and promoting efficient utilisation of public resources.

He said Tarda, however, seeks appropriate safeguards to protect employees, ensure an orderly transition of functions, assets and liabilities, and provide for the settlement of outstanding financial and statutory obligations arising from the proposed dissolution.

The Cabinet had, in 2025, endorsed a decision requiring the National Treasury’s assessment of 271 State corporations, excluding those earmarked for privatisation, identifying areas of inefficiency and redundancy.

The report revealed that many corporations have struggled to meet their statutory obligations, resulting in pending bills amounting to Sh94.4 billion as of March 31, 2024.

Topping the list of dissolutions and mergers of the 42 State corporations is the University Fund, which is set to be merged with the Higher Education Loans Board and the Kenya Rural Roads Authority, which will be consolidated with the Kenya Urban Roads Authority.

Others are the Kenya Tourism Board & Tourism Research Institute, the Export Processing Zones Authority & Special Economic Zones Authority, the Anti-Counterfeit Authority, Kenya Industrial Property Institute & Kenya Copyright Board, the Kenya Industrial Research and Development Institute & Kenya Industrial Estates, the Agricultural Finance Corporation & Commodities Fund, the Kenya Forest Service & Kenya Water Towers Agency, the Agricultural Development Corporation & Kenya Animal Genetic Resource Centre, the National Irrigation Authority & National Water Harvesting and Storage Authority, and the Kenya Law Reform Commission & National Council for Law Reporting.

The Cabinet, chaired by President William Ruto on March 7, 2024, directed the Ministry of East African Community and Regional Development to review the relevance of the six authorities that were established under various Acts of Parliament that have since been overridden by the Constitution that was promulgated in 2010.

The Fourth Schedule of the Constitution empowers the 47 county governments to recognise the right of communities to manage their own affairs and to further their development and requires devolved units to facilitate the decentralisation of the State organs, their function and services, from the capital of Kenya, Nairobi.

Appearing before the committee chaired by Sigor MP Peter Lochakapong on Thursday, August 13, 2026, Mr Liban said the Bill should clearly distinguish institutional liabilities from employee salary arrears and statutory deductions made at source.

“Additionally, a definite and enforceable timeline should be established for settlement of the Sh176,944,578 outstanding recurrent obligations, with employee-related payments treated as a priority,” he said.

“We propose that permanent, pensionable and contractual employees should be absorbed into successor institutions on terms no less favourable than their current job groups, salaries and terms of service. Placement should be aligned with employees' qualifications, competencies, experience and career progression, while practicable consideration should be given to family circumstances, health needs and proximity to duty stations.”

He said long-serving casual employees should be considered for absorption through a fair, transparent and merit-based process.

“Where redundancy is unavoidable, affected employees should receive fair and lawful compensation in accordance with the Employment Act and applicable public service regulations.

Tarda respectfully prays that the Departmental Committee recommends an express provision in the Bill or transitional framework for the full settlement of Tarda’s outstanding salaries and related statutory deductions of Sh176,944,578 for the period January 1 to June 30, 2026. Provides for fair and merit-based placement based on employees' qualifications, skills, experience and career paths.

Reporting originally appeared via Nation Africa. Read the full source for additional context.